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NJ Cuts Public Worker Benefits
By EmploymentCrossing
New Jersey Governor Jon Corzine has signed legislation slashing benefits for public workers, over the objections of labor leaders.
Public employees will no longer get Lincoln’s birthday as an official holiday, and newly-hired workers won’t be able to retire with full benefits until they’re 62, rather than at 60 as before.
“This legislation is another step in the realignment of the compensation of our public employees,” Corzine told the Associated Press. “The reforms over the last two years strike the right balance of being fair to hardworking public employees and at the same time lightening the burden on taxpayers.”
The new law also requires that government workers and teachers earn $7,500 per year to qualify for a pension, allows the state to offer incentives not to take health insurance, and requires municipal employees work 20 hours per week to get health benefits.
The changes affect mainly new state workers and teachers.
The state’s labor unions unsuccessfully lobbied Corzine to veto the bill, arguing that the law sidesteps a requirement that their contracts be negotiated.
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